Private lender ICICI Bank has unveiled a paperless facility that will enable its salary account customers to get approvals for overdraft (OD) instantaneously.
Titled as ‘Insta Flexicash’, the end-to-end fully digital service can be used on the lender’s internet banking platform. The product is being introduced at a time when consumption-linked retail credit growth has decreased. According to the latest data by the Reserve Bank of India (RBI), retail loans increased just by 12% year-on-year (y-o-y) in April against 15.7% a year ago.
The facility can get the approval immediately while customers can start using the okayed limit within 48 hours. The interest payable on the OD is considered on the basis of the exact amount availed by the customer, not on the full amount of the OD approved, the lender said, adding that the credit limit could be around three times the customer’s net salary.
Customers now have the facility of clearing the outstanding limit at their expediency and are needed to pay the interest that is pending every month. Customers will now be able to repay the OD amount that they can avail as and when they want to, without any foreclosure charges. An automated process enhancement and renewal of OD limit can be availed every 12 months.
Sudipta Roy, head – unsecured assets, ICICI Bank, said, “This new facility, ‘Insta FlexiCash’, is an extension of this endeavour. During the testing times of the coronavirus pandemic, we feel that this new facility will help our salaried customers tide over their need for liquidity for various expenditures in a hassle-free manner.”